How Cibil Score Increases decrease

By | March 21, 2024

How CIBIL Score Increases decrease: How CIBIL score increases or decreases, get complete information

How to update CIBIL? : CIBIL score is important if you want to take loan from any bank. You may also want to know the complete information given below so that you can get a good CIBIL.

If you want to take a loan from any bank, they will first check your civil score, your civil score should be above 750 and then you will get the loan.

How Cibil Score Increases decreases

Name of the post How Cibil Score Increases decreases
Language Gujarati
category Finance and Loans
Best Sybil 750
Take Sybil 500-

Sybil Score: What is it and know how to improve it?

CIBIL score is a measure of your financial behavior that shows your ability to repay your loans. A score of 750 or above is considered good and a score below 750 is considered poor.

Main Reasons for CIBIL Score Decline | Main Reasons for CIBIL Score Drop:

Irregular EMI payments : Failure to pay EMIs on time can lower your score.
Repeated loan applications: Applying multiple times in a short period of time will lower your score.
Unsecured loans: Getting more unsecured loans than secured loans can lower your score.
Loan Guarantee: Someone else’s loan guarantee and defaulting on the loan can lower your score.
High Credit Utilization: Using more than 30% of your credit card limit will lower your score.
How to Improve CIBIL Score:

Credit Mix: Maintain a balance of secured and unsecured loans.

  • Prompt Payment: Pay EMIs, Credit Card Bills on time.
  • Credit Utilization Ratio: Utilization limit is less than 30% of credit card limit.
  • Responsibly Guaranteed: Only responsibly guarantee the loan.
  • Pay off small loans: Improve your score by applying for small loans and paying them back on time.
  • Check your credit report: Check your report for false information and file a complaint.
  • Use credit cards as needed: Avoid multiple cards and keep them only when you need them.
  • Additional Tips:

Here are some ways to improve your CIBIL score:

  • Pay dues on time: Pay your credit card dues and loan EMIs in full and on time. This shows responsible credit behavior.
  • Limit credit utilization: Experts recommend not using more than 30% of your credit limit. For example, if your credit card limit is Rs. 1 lakh, you should spend around Rs. 30,000.
  • Avoid multiple loan applications: Don’t apply for a loan unless you need it.
  • Maintain a good credit mix: Borrow a mix of credit.
  • Keep your oldest credit account active: Avoid closing old credit accounts.
  • Report errors in your CIBIL reports: Monitor your credit report frequently for administrative errors and possible fraudulent usage
Here are some other ways to improve your CIBIL score:
  • Set reminders or standing instructions to repay loan EMIs on time
  • Eliminate your credit card balance
  • Dispute inaccuracies
  • Show good debt
  • Demonstrate the reliability of bill payment
  • Be disciplined with repayments
  • Use your credit card carefully
  • Handle loan/credit card rejections smartly 
Here are some mistakes that can negatively affect your CIBIL score: Missing out on payments, Maintaining your credit utilization ratio high, Availing loans more than required, Making multiple credit inquiries, and Having no or low credit history. 

Avoid Default: Never default on your loan.

Don’t close old accounts: Don’t close old credit card accounts, it will strengthen your credit history.
Fix errors: Correct any errors on your credit report.

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